23rd June 2020 | Posted by: Daniel Birkett | Market Analysis

Gas Power
Market Close Market Close
Gas prices corrected downwards during Monday’s session, erasing some of Friday’s gains. The system was oversupplied thanks to a rise in renewable power and lower demand, while rising oil limited losses at the back of the curve. Power prices traded down yesterday, following their gas counterparts and ignoring a rise in carbon. The prompt found some support from an expected drop in wind levels today, with demand also expected to rise in the middle of the week.
Market Open Market Open
The system has moved closer to balance this morning as gas-fired power demand has grown, resulting in upward movement on the prompt and the rest of the near curve. Meanwhile, bullish movement on European stock markets and global commodities has pushed longer dated contracts higher. Overall markets are very supportive this morning, with a rise in equities, feedstocks, coal, carbon and oil transferring to the power curve. European PMI data is much healthier than expected and strong economic growth is anticipated month on month.

For a breakdown of the current generation mix visit our Power Generation Insights page.

Brent Summary

Brent currently trades above $43/b with the tightening of global supply successfully supporting the oil market.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased, closing at 32.30ppt and £43.92/MWh, respectively.

Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.

Click graph to enlarge

energy price graph - 23-06-2020

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